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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Robert Rose who wrote (25777)	9/14/1999 3:44:00 PM
From: KeepItSimple	Read Replies (4) \| Respond to of 99985

The game is over. Tomorrow is the day of reckoning. Fully short, up to the gills in sep exp puts across the board in red hots and momo techs. INTC MSFT AOL YHOO EBAY MU QCOM CSCO

To: Robert Rose who wrote (25777)	9/14/1999 4:43:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 99985

Robert, i will...i just need some time to find the link that has the detailed explanation. but off the top of my head i can tell you that it has a lot to do with the attempt to measure quality improvements. e.g. if the processing power of a PC doubles and the price of the PC compared to the previous model say is higher by 10%, the "price" will be considered to have fallen. now i know PC's are not the best example<g>, but you get the gist...something that's very hard to measure (quality improvement) is entered into the calculation. this is not the only doubtful component of CPI calculation, another one is that for instance house prices have been excluded from the CPI - patently non-sensical in a society with very high home-ownership. i have to get back to you about more details. basically my conclusion is that the CPI is not "doctored" per se, but that the "improvements" in it's calculation which were introduced in recent years due to the belief that it was overstating inflation are questionable at best. of course it's in the governments interest to keep the CPI as low as possible to keep entitlement spending somewhat curbed. it is therefore quite reasonable not to trust the picture painted by PPI and CPI - especially since it flies in the face of every piece of anecdotal evidence i've come across lately. more on the CPI later.... regards, hb